Carvalho Cosméticos stands out in the outsourcing market with a new manufacturing plant in Espírito Santo

Tax breaks and the short distance to the Port of Vitória were key factors for the company to select the southeastern state as home for its third industrial park.

Carvalho Cosméticos started operations in 2008, but the company’s history is way longer, dating back 16 years, when Viva Cosméticos opened its doors in Rio. “Viva used to play a major role in the outsourcing business for the pharmaceutical and cosmetic industries. We started by manufacturing cosmetic sachets and providing general manpower services, but we soon faced the need of building up our structure to fulfill the market’s demands,” says Iva Martins, Carvalho Cosméticos’ CEO.

Iva Martins, Carvalho Cosméticos’ CEO

Carvalho currently specializes in outsourcing services for the personal care, cosmetics and fragrance industries, making use of its production facilities – including the country’s largest outsourcing plant, located in Rio – to develop everything from sachets to packaging and end products, as well as performing physicochemical and microbiological analysis of raw materials.

The company’s portfolio includes products of different categories such as makeup, fragrances, talcum powders, clays, bleaching powders, lotions and sunscreens, which are produced or nationalized for domestic and multinational companies including Adcos, Alfaparf, Chanel, Laboratório Daudt, L’Oréal, Leite de Rosas e Niely. “We partner up with companies that don’t own a plant to manufacture their products on an industrial scale and also those that choose to outsource for strategic reasons,” says Martins.

To carve out its place in the Brazilian CT&F supplying business and thus be able to service clients outside Rio, Carvalho decided to build a third plant, this time at the Cariacica industrial hub, in the southeastern state of Espírito Santo. Its location was strategically chosen – the township is located in the metropolitan area, just outside of the state’s capital of Vitoria, in the vicinity of Espírito Santo’s main port zone. “Many of our products and raw materials arrive at the Port of Vitória. Previously, they had to be shipped to Rio for processing and then sent out to their destination. Now the whole operation is more streamlined,” she says.

Martins herself was born in Espírito Santo and moved to Rio with her family when she was a child. She engaged in deep research for areas with a high unemployment rate and concluded that Cariacica had the perfect labor force for the new plant and the potential to provide manpower to the company while contributing to regional development. Early in August, Iva Martins was honored with the Espírito Santo Business Leader Award 2016, granted to businesses and entrepreneurs with outstanding performance in the state.

Although she refrained from disclosing precise amounts, Martins revealed she received considerable tax breaks from the state government to build the plant, which sits in a 7,000 sqm area and boasts a capacity of 5 million units per month.

According to Martins, the facility follows the same standards of its sister plants “with a few improvements and more modern equipment” and has received investments of R$ 14 million. “We expect to recover the costs of building the new plant in five years, despite the economic recession Brazil is going through,” she says.

Until the end of the year, the Cariacica facility should employ another 100 people, totaling 250 by 2017. The company’s HQ in Rio provides 700 direct jobs. Martins also reveals that a second plant in Espírito Santo, dedicated exclusively to makeup and aerosol products, is in the company’s plans.

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